Tata Steel sells 51 pct in refractory unit to Japan's Krosaki for Rs576 crore

Tata Steel today announced the sale of a majority 51 per cent stake in its refractory business to Krosaki Harima Corp, spinning it off as an indirect a subsidiary of Japan's largest steel maker Nippon Steel Corp.

Both the companies have entered into definite agreements for the deal, it added.

Tata Steel has a 77.46 per cent stake in Tata Refractories. The transaction, entered into at Rs1, 045 crore, or around Rs576 crore, values the unit at about Rs1,130 crore.

"Under this arrangement, KHC will acquire 51 per cent equity stake out of Tata Steel's current 77.46 per cent stake in Tata Refractories (TRL)," Tata Steel said in a statement.

Tata Steel would continue to hold the remaining 26.46 per cent stake in the Tata Refractories, which is so far the country's largest refractories maker.

"I am happy with this association with Krosaki Harima and I am sure this partnership will propel the business to greater heights in future," Tata Steel managing director Hemant Nerurkar said.